Question: 1. A 120-day, 8% promissory note with face value of $15,000 issued on May 1, 2012 was sold on August 5, 2012 while the cost of money is 4%.
(1) When is the maturity date of the promissory note? (Answer in format of date is MM/DD/YYYY)(2) What is the maturity value of the promissory note?
(3) What is the price the note was sold on August 5, 2012?
(4) What is the profit did the note holder get from selling the note?
(5) What is the interest rate did the note holder earn from selling the note?
(6) If the buyer cash the note on the maturity date, how much profit did the buyer earn?
2. A demand loan was taken out from the TD Bank at a cost of 9% p.a. The demand loan agreement provided for payments of $1,300 on April 9, 2014, $1,500 on May 5, 2014 and a final payment on August 8, 2014. The loan was originally taken out for $3200 on March 2, 2014.
(1) How much was the outstanding balance of the loan right after the first payment made on April 9, 2014?
(2) How much was the outstanding balance of the loan right after the second payment made on May 5, 2014?
(3) How much was the final payment on August 8, 2014 to pay out the loan?
3. A Credit Card had the following purchases in the month of June. If the rate attached to the card is 21.5% and there have been no other purchases, answer the following questions.
June 10: Cash Advance of $200.00.
June 27: Purchased a suite for $648.35 from Bay.
(1) Find the amount of interest charged on the cash advance from June 10 to June 30.
(2) Find the amount that must be paid on June 30, to fully pay-off the credit card balance.
(3) If only the minimum of $10 is paid on June 30, and there are no other transactions in June, how much will be owing on the card on July 31?